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Problems 1 and 2 relate to this information: The current monthly income statement for LLT,...

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Accounting

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Problems 1 and 2 relate to this information: The current monthly income statement for LLT, Inc., represents the results of selling 12,000 coffee mugs: Sales (revenue) $84,000 Cost of goods sold (45,000) Gross margin $ 39,000 S & A expenses (30,000) Income before taxes $ 9,000 Income taxes (@ 30%) (2,700) Net income $ 6,300 Cost of goods sold included fixed manufacturing costs of $9,000 and selling and administrative expenses (S & A) included $12,000 of fixed costs. Sales commissions amounting to $.50 per coffee mug were also included in S & A expenses. Hint: "Net income" is after income taxes. 2. LLT received a special order for 1,500 coffee mugs from the Chicago Lyric Opera ("Lyric"). LLT would not have to pay a sales commission on these mugs, but would have to place a special "Lyric design" on each mug at a cost of $0.60 per mug. In addition, the fixed cost of setting up this order would amount to $1,350. What is the lowest price that LLT could charge Lyric for this mug without losing money on the transaction

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